TA-4898: Testing important support.
Chart 1: TA-4898 (10/11/2009～19/05/2010)
As shown on chart 1, price of TA has been supported by the RM0.66 level for about 4 months, and therefore, investors has accustomed to the RM0.66 support, and has unconsciously created a memory at this support level, as many investors had tried to take advantage of the rebound at the RM0.66 level.
Technically, provided that price should rebound from the RM0.66 level, then this level will create a positive effect for investors, for every time it rebounds from here, those who had bought near the RM0.66 level would be making some profit.
Conversely, if price should break below RM 0.66 level, and market a new low, RM 0.66 would reverse its role to becoming a resistance, for it would be a psychological level for investors to “break even”.
In short, RM0.66 is an important support level, and if price should break below this level, there would be many investors wanting to break even, thus the selling pressure is expected to be stronger. Next support for TA is seen at RM0.62 followed by RM0.55.
| 4 Q Rolling PER | 12.43 times | Dividend Yield | 0% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/01/2010 | 0 sen | 11.11% | 0 % |
| 31/01/2009 | 4.50 sen | 11.17% | 7.32% |
| 31/01/2008 | 10.00sen | 8.11% | 7.94% |
| 31/01/2007 | 7.00sen | 6.35% | 7.95% |
| 31/01/2006 | 3.00sen | 6.00% | 6.34 |
Table 1: TA-4898, yearly dividend, dividend yield, and net profit ratio.
Tchong-4405: Downtrend Consolidation.
Chart 2: Tchong-4405 (22/01/2010～19/05/2010)
As shown on chart 2, Tchong formed a T1 downtrend line, breaking below the 14, 21, 31 EMA. There was a brief rebound at RM4.10 level, but still, price failed to break above the T1 line, thus making last week's rebound a technical rebound.
After resisted by the T1 line, price of Tchong started falling again and now testing the RM4.10 level. If price should break below RM4.10, it would be making a 1 and a half month new low, with the T1 still serving as the dynamic resistance. It would be a signal to cut loss, for the technical outlook shall remain weak provided that the T1 line is still intact.
| （4 Q Rolling PER | 17.75 times | Dividend Yield | 2.66% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 11 sen | 3.61% | 5.33% |
| 31/12/2008 | 10 sen | 8.62% | 7.69% |
| 31/12/2007 | 7.5 sen | 3.61% | 5.34% |
| 31/12/2006 | 5.0 sen | 4.00% | 2.84% |
| 31/12/2005 | 7.5 sen | 5.56% | 4.44% |
Table 2:Tchong-4405, yearly dividend, dividend yield, and net profit ratio.
Review last week's Case Study:MPHB-3859: Remains in downtrend.
Chart 3:MPHB-3859 (22/01/2010～19/05/2010)
As shown on chart 3, price of MPHB remains resisted by the T1 downtrend line. Other than that, the 14, 21, 31 EMA is also serving as the dynamic resistance, thus making the technical outlook of MPHB weak.
By looking at the downtrend of MPHB since last week, one can clearly identify the characteristic of a downtrend, which is lower-highs. Nevertheless, immediate support for MPHB is seen at RM2.00, and if price should break below this level, next level is at RM1.75.
Technically, price has to break above the T1 and the 14, 21, 31 EMA successfully, in order to break away from the downtrend movement, then only MPHB would have a chance to consolidate. As for gaining strength or having a reversal, the rally of price must be accompanied by strong volume. Without these conditions, the technical outlook for MPHB shall remains weak.
| 4 Q Rolling PER | 6.59 times | Dividend Yield | 4.27% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 9.00 sen | 4.66% | 10.15% |
| 31/12/2008 | 10.00 sen | 9.26% | 4.31% |
| 31/12/2007 | 11.00 sen | 4.74% | 11.71% |
| 31/12/2006 | 0 sen | 0% | 36.54% |
| 31/12/2005 | 0 sen | 0% | -69.12% |
Table 3:MPHB-3859, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
The general idea is to trade with the general direction of the broad market. What if the general market direction is still moving higher but your individual counter is having losses? When this happens, one should always honor his or her trading plan, and cut loss, despite the KLCI is still holding up, because, the falling of the stock price hurt your portfolio directly, while the KLCI performance is only a general guideline of how the overall market is doing.
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